multiplier effect

1. An effect in economics in which an increase in spending produces an increase in national income and consumption greater than the initial amount spent. For example, if a corporation builds a factory, it will employ construction workers and their suppliers as well as those who work in the factory. Indirectly, the new factory will stimulate employment in laundries, restaurants, and service industries in the factory's vicinity.

Example Sentences

That,” she says, “is the multiplier effect of investing in women.

From The Daily Beast

That takes time before the multiplier effect fully kicks in with private sector job creation.

From The Daily Beast

Hence, a dollar of government spending would produce more than a dollar of new output because of the “multiplier effect.”

From The Daily Beast

Well-meaning outsiders applauded but few understood the reverse multiplier effect of a soldier getting pregnant in a combat zone.

From The Daily Beast

And, that increased spending will have a multiplier effect increasing spending even further.

From The Daily Beast